Retailing: Consumer Sentiment Stays Strong

The business climate indicator for retailing edged downwards slightly in January, but remained way above the figure for the same period last year. The retailers surveyed were slightly less positive about their current business situation at the beginning of the year, but satisfaction nevertheless remained at a fairly high level. Retailers even expressed slightly more confidence in their six-month business outlook than in December. According to assessments by the German Federal Statistics Office, retailing ended the year with almost 3% growth in real turnover, or 4.7% in nominal terms. On annual average prices were 1.9% higher than last year. In view of almost unchanged inventories, slightly fewer retailers plan to step up their ordering activity. According to survey results, the same number of retailers is planning price hikes as in December. Retailers also plan to recruit more staff. The economic framework conditions for consumption remain positive for 2018.